New models, more production could boost Hyundai shares: Barron's

The logo of Hyundai Motor Co. is seen on a wheel of a car at a Hyundai dealership in Seoul October 21, 2013. REUTERS/Kim Hong-Ji

(Reuters) - Investors are underestimating Hyundai Motor Co’s (005380.KS) ability to turn around itself and its stock after rocky period, according to Barron’s in its January 27 edition.

The South Korean auto manufacturer’s stock fell almost 1 percent annually, on average during the past two years, due to slowing growth, tough competition, and currency fluctuations.

But the stock is posed for a turnaround during the next 12 months, possibly rising at least 30 percent, Barron’s reported.

Barron’s said that Hyundai is launching new models and boosting production to compete with Japanese and U.S. car makers. Their average yearly gains were 28 percent and 19 percent, respectively, during the period same two-year period in which Hyundai’s stock has been falling.

Foreign exchange-rate swings, however, remain a wild card, Barron’s said. Emerging-market currencies weakened in recent weeks, which could help Hyundai. But that could spook foreign investors if the trend becomes extreme and hurt the stock, Barron’s said.